Feasibility Review*- a quick walk-thru survey of the property with a “rough estimate” of work needed to comply with HUD requirements. In most cases this is the best way to start out when a borrower is using a 203k loan. It quickly determines the extent of ancillary repairs and exposes potential health, safety or structural deficiencies. The cost of the Feasibility Review is NOT included in the 203k Consulting Fee. This review is simply a brief “walk-through” and a 1 to 2 page cost estimate of work that will be necessary to comply with HUD & MPS requirements.
Property Condition Inspection (not a home inspection) - The Constant will perform a Property Condition Inspection of the property to determine the Health, Safety and Other issues that will need to be included in the Scope of Work for the 203k Rehabilitation Program. The Consultant will prepare a Report based on the current condition of the Property that will address the property utilizing the HUD's 35 point checklist. The report will address visible deficiencies in major systems (electrical, plumbing, heating, roofing, AC, structure, etc).
Work Write-Up (WWU) - includes the following: a) a detailed General Description of the property in its “as-is” condition in a narrative format; b) the Consultants Scope of Repairs (SoR) is a combination of the HUD required repairs, Minimum Property Standards (MPS) and the clients desired rehab or repairs; c) applicable FHA forms for review (consultant agreements, certification, no conflict of interest letter.)
**Architectural Exhibits which (may include but not limited to: interior floor plans, design drawings, cabinet elevations, termite report, radon test, mold report, city / county code compliance inspections, heat loss calculations for new HVAC systems, asbestos inspections, sewer line scoping. etc; d) a 203k Self Help Agreement if applicable; e) a Work Write-Up (WWU) synopsis which includes the job total rehab amounts, fees and expenses related to the rehab portion of the work; a Work Cost Estimate broken out into 35 line items; an initial Draw Request form with a Re-Cap of the 35 line item Sub-Totals. The information in this package generally includes the documentation the lender needs to both order the Appraisal and to complete his part of the renovation loan process and submit to the underwriter.
The Fee Guideline for Consultant Services we use has been established by HUD *** as follows:
Consulting Fee / Rehab Loan Value on a SFR (single family residence)
$350 Feasibility Analysis* ($100) & Property Condition Inspection ($250) + mileage
|$400||$5,000 to $7,500||+ mileage|
|$500||$7,501 to $15,000||+ mileage|
|$600||$15,001 to $30,000||+ mileage|
|$700||$30,001 to $50,000||+ mileage|
|$800||$50,001 to $75,000||+ mileage|
|$900||$75,001 to $100,000||+ mileage|
|$1000||Over $100,000||+ mileage|
|Call to Quote||$125,001 & Up||+ mileage|
|Draw Fees||$250 & Up depending on travel time, extent of rehab + mileage|
|Mileage||$0.57 p/mile OVER 30 miles round trip from Consultants Office|
|Change Orders||$150 (HUD allows $100 to be paid by the contingency or contractor)|
|Feasibility Review Multi-Family||Add $100 p/unit (HUD allows $25 to be financed into loan)|
Additional Fee’s or Costs That May be Applicable or Needed
|Termite Inspection||$65 - $75||for Single Family Residence|
|Mold Test||$350 - $450||for Single Family Residence|
|Radon Test||$150 - $175||for Single Family Residence|
|Engineers Report||$350 - $500||for Single Family Residence|
Feasibility Review*- A brief feasibility "walk-thru" survey is for a preliminary evaluation only. It should be used as a tool to determine the desirability of continuing with the loan process, or as a tool for the Borrower seeking to use the renovation loan. It is NOT to be considered as a complete Cost Estimate and CAN NOT be used for Underwriting or Appraisal purposes.
Architectural Exhibits ** (See Below)
The Consultant may require reports, tests, drawings, inspections, etc referred to by HUD as “Architectural Exhibits” for inclusion into the final report. These could include but not be limited to: interior floor plans, design drawings, kitchen cabinet elevations, termite reports, a radon test, mold reports, city/county code compliance inspections, insurance loss reports, engineers reports, sewer line scoping, heat loss calculations for new HVAC systems, asbestos inspections, etc
203k Fees ***
The above fees are for the FULL 203k loan - Not the 203k Streamline Loan. Please note, they include the Work Write-UP and the Feasibility Review, and Construction Inspection/Analysis of the property. The fee charged for the Initial Work Write-UP is based on your pre-determined valuation of work to be done prior to the site visit by the Consultant and based on the general FHA Fee Guideline for Consultant Services* provided above. Initial Consultant fees are due at the time of inspection and prior to the preparation of any written reports. Additional fees that may be applicable (if any) due to either an increase in the rehabilitation portion of the loan amount or the required Draw Requests, as contained in the completed Work Write-Up, shall be in accordance with the above applicable fees and paid prior to delivery of the report.